Firmly into the spring real estate market
A total of Seven hundred and seventy-four properties sold in the Victoria Real Estate Board area this past April. That is almost 13 per cent fewer than the 885 properties that sold in April of last year.
Overall sales are down 18 per cent when compared with 2017, and we are now firmly into the spring real estate market, traditionally one the busiest times for buying and selling homes. May and June were the busiest months of last year, and we are expecting this pattern again. Inventory in our market is still considered low, and good homes in desirable locations are still seeing multiple bids. Of interesting note is the increase in prices, even as we see fewer sales in this market. Part of the reason for this may be the strong pressure we are seeing on lower-priced properties.
There was a total of 2,002 listings available for sale on the VREB Multiple Listing Service at the end of April, that’s over 13 per cent more compared to the month of March, and 18.5 per cent more than available for sale at the end of April 2017.
The Benchmark price for a single-family home in the Victoria area in March 2017 was $800,100. Today the benchmark value for the same home has increased by almost 8.5 per cent to $866,700.
Three Steps to Addressing Rental Issues
In a move to address the shortage of rental homes in British Columbia, the provincial government has introduced legislation to give local governments more control in the rental housing market.
If approved by the legislature, the First step would give municipalities two new powers: 1. To zone undeveloped land for the construction of rental units, or decree that a certain percentage of units on that land must be rented out; and 2. Make existing rental units remain rentals after redevelopment. Local governments, of course, would have the option of choosing whether or not they want to use these rental zoning powers.
A Second step was to introduce a bill to amend the Local Government Act. If approved, this new piece of legislation will mandate that local governments must conduct regular housing need assessments and produce reports every five years.
The Third step is to crack down on people who evade taxes while selling condos before they have been built. To address this, the government is recommending changes to the Real Estate Development Marketing Act which would make real estate developers file a report whenever a condo is sold or assigned before it has been built.
The Best of Victoria / Changes
The Corvette Landing is coming to Esquimalt! The new building will be an all timber twelve story residential building, second in height only to the 18-storey Brock Commons building at the University of British Columbia.
To be built at the corner of Constance Avenue and Admirals Road, near CFB Esquimalt, the entire complex (except foundations) is to be built using engineered wood materials assembled off-site and will feature external corridors, rooftop terraces and an inner courtyard.
This is the future of modern, sustainable construction. By taking most of the concrete out of the construction, a greener building results. This is because concrete production is one of the biggest producers of greenhouse gases in residential construction. And, because wood construction is so air-tight and efficient, the operating costs of the building make it easy for people to buy and live-in and enjoy! With modular-like construction, the project will receive a full passive-house certification meaning that it will be incredibly environmentally friendly.
Corvette Landing is another great affordable housing initiative and will be offering for sale, studio, one, two, and three Bedroom suites for buyers who earn between $68,000 and $72,000 a year. Construction on the 83 unit project is slated for 2019 with completion scheduled one year later.
Victoria Real Estate Board April Stats